Life Products

Life insurance, annuities, long term care and disability income protection are all products you will rely on many years into the future. Stability is the most important factor to consider when entrusting your future with a life insurance company. Will the company be around in 20, 30, 40 years to deliver on the promises you paid for?

Some things to consider and compare:

How long has the company been around?

Auto-Owners Insurance has been here for our customers since 1916. Auto-Owners Life Insurance Company is celebrating its 40th Anniversary in 2005.

Is there a representative I can know and trust in my community, explaining and helping me with my needs?

Auto-Owners is represented in your community by a professional Independent Agent ready to help you; the same agency that may already be helping you with your home, auto or business insurance.

"I know if something happened to me, I would not want my loved ones surfing the internet, or calling 800 numbers, trying to find someone to pay on my life insurance policy. I want a local agent we know." (Customer Testimonial)

What are the Financial Ratings of the company I put my trust in?

Independent rating organizations evaluate and rate companies based on their ability to pay claims and remain financially stable in the future. Auto-Owners Life Insurance Company ratings are among the best in the industry.

A M Best A+ (Superior)
Weiss A (Excellent)
Ward Financial Group "Top 50 Companies"
(from 3,900 companies analyzed)

Auto-Owners Life Insurance Company offers excellent value products you can count on! Because we value the whole customer relationship, we offer multi-policy discounts to lower costs on your home, auto and business insurance when you become a Life Company customer. Discount rules vary by state. Ask us about it.

NOTE: Coverages or discounts may not apply in all states. Some exclusions and limitations may apply.

One of life's rewards for working hard and saving for a rainy day is achieving financial security. One of life's realities, however, is the possibility of premature death, leaving financial responsibilities for the loved ones left behind.

There is a solution.... life insurance. Only life insurance can create an immediate cash fund for loved ones. So, even if death is premature, financial security for your family is possible.

Life Insurance Discounts for...
Universal Life Non-tobacco use
Whole Life Non-cigarette smokers
Simplified Issue Whole Life Higher amounts of insurance
Simplified Issue Children's
Advantage Plan Plus® Customized Joint Life
Simplified Issue 5 Year Term Multiple policies
10 and 20 Year Level Term Payroll deduction
Decreasing Term
Annual Renewable Term

Which Life Insurance is Best?
What Types of Life Insurance Are Available?
Which Auto-Owners Life Insurance Program Would Fit My Needs?
Most Auto-Owners Life Insurance Products Can Include These Optional
Additional Benefits:

Which Life Insurance is Best?
There is no "best" life insurance program. Each person's needs are different. For example, life insurance is needed when people marry, purchase a home, start a family, send children to college, own a business or retire.

What Types of Life Insurance Are Available?
Permanent insurance is designed to provide life-long coverage with benefits and features usually not available with term life insurance policies. Cash value is available for emergencies, family members can be included and coverage and premium payments generally remain level.

Term insurance provides coverage for a specified period of time such as 10 or 20 years. It is designed to protect short-term needs such as debt obligations, mortgages or protection while children are young. Typically, term insurance does not provide cash value.

Which Auto-Owners Life Insurance Program Would Fit My Needs?
If your needs include lifelong financial protection for your family, saving money for your children's college education and/or your own retirement, then a PERMANENT program should work for you.

Auto-Owners offers these permanent programs:
Universal Life Insurance... Provides immediate cash value, flexible premium payment plans, tax deferred savings and guaranteed death benefits. Auto-Owners Perma Term 2 and 3 Universal Life programs can be custom designed to fit individual protection needs, financial security needs and supplement retirement needs.

Whole Life Insurance... Provides level death benefit protection with level premiums and guaranteed cash values. Auto-Owners Whole Life insurance can provide needed cash value for emergency family needs and can help supplement future retirement income.

Simplified Issue Whole Life... This plan offers guaranteed premiums, death benefit protection and cash values to age 100 for insureds age 50-80. Provides coverage for final expenses, such as medical and hospital expenses, outstanding debts and funeral costs. Easy-to-complete short form application with minimal underwriting requirements.

Simplified Issue
Children's Advantage
Plan Plus®... This plan offers guaranteed premiums, death benefit protection and cash values to age 100 for insureds 15 days through age 17. The death benefit will increase automatically 50% at age 18 and then again at age 25, with no increase in premium. An annuity rider is available in all states except Florida.
NOTE: Coverages or discounts may not apply in all states.
Some exclusions and limitations may apply.

If your life insurance needs are for protecting short term debt obligations, a home mortgage, or simply to make sure there will be money available for your family should death occur while your children are young, then TERM insurance may fit your needs.

Auto-Owners offers these term programs:
Term 500... Minimum death benefit for this policy is $500,000. Either a 10 or 20 year term can be purchased with the premiums guaranteed for that period.
10 and 20 Year Level Term Insurance... These programs provide level death benefits for either 10 or 20 years. They can include a guaranteed premium and renewal benefit at the policyholder's option.

Yearly Renewable Term... Provides protection for one year at a time. Premiums are adjusted each year coverage is continued.

Decreasing Term... Provides decreasing death benefit protection for a specified term of 10, 15, 20, 25 or 30 years.

Simplified Issue 5 Year Level Term... This plan provides low-cost level death benefit protection for short-term needs such as debt obligations. Easy-to-complete short form application with minimal underwriting requirements.

NOTE: Coverages or discounts may not apply in all states.
Some exclusions and limitations may apply.

Most Auto-Owners Life Insurance Products Can Include These Optional Additional Benefits:
Disability Waiver of Premium... Waives premium payments (or cost of insurance charges if Universal Life Insurance) if the insured becomes disabled for six months or longer.

Accidental Death... Provides additional death benefits should death occur as a result of an accident.

Family Plan... Insured's spouse and/or children can be added for life insurance protection.

Mortgage Payment Disability Benefit... Provides money to continue making debt obligation payments if the insured becomes totally disabled for 60 days or more.

Payor Death and Disability... This additional benefit waives the premium payments (or cost of insurance charges if Universal Life) on a child's policy if the premium payor becomes disabled or dies.

Guaranteed Purchase Option... Provides opportunities to purchase additional life insurance protection at certain ages without proving insurability.

NOTE: Coverages or discounts may not apply in all states. Some exclusions and limitations may apply.

Regardless which program fits your specific needs, Auto-Owners Life Insurance Company products are among the best in the industry. We pride ourselves in providing high quality, fairly priced life insurance, disability income, long term care and annuity programs.

Auto-Owners Life Insurance Company has several annuity plans available. Click one of the links below to find out more.

Traditional Individual Retirement Annuities (IRA)
Roth Individual Retirement Annuities (IRA)
Non-Qualified Deferred Annuities

IRAs are government approved qualified programs to help people plan and save for their retirement years. Many individuals have the option of choosing to invest in a "Traditional" IRA and the "Roth" IRA. Auto-Owners uses deferred annuities to fund either of these tax advantaged plans.

WHAT IS A TRADITIONAL IRA?

A Traditional IRA is a personal retirement savings plan. Contributions may be tax deductible and interest earnings are tax deferred.

Can I Have a Traditional IRA?
When Can I Use My Traditional IRA?
What Other Advantages Do Traditional IRAs Have?

Can I Have a Traditional IRA?

Anyone under the age of 70-1/2 with earned income can contribute up to the lesser of 100% of earned income or $4,000 per year. Taxpayers age 50 and over can make an additional annual "catch-up" contribution. The following tables outline contribution and deductibility rules for tax year 2006:
If you are an active participant in your employer's retirement plan:

MARITAL STATUS - MAGI*
DEDUCTION

Single- MAGI up to $50,000 Full $4,000 plus $1,000 "catch-up" if applicable

Single- MAGI between $50,000 and $60,000 Partial

Single- MAGI over $60,000 None

Married- MAGI up to $70,000 (filing jointly) Full $4,000 plus $1,000 " catch-up" if applicable, per spouse

Married- MAGI between $70,000 and $80,000 Partial

Married- joint MAGI over $80,000 (filing jointly) None

Married, filing separately- MAGI less than $3,000 Up to income earned

Married, filing separately- MAGI between $3,000 and $10,000 Full $4,000 plus $1,000 "catch-up" if applicable, per spouse

Married, filing separately- MAGI over $10,000 None
*MAGI is Modified Adjusted Gross Income

If you are not an active participant in your employer's retirement plan, but your spouse is an active participant in an employer's retirement plan:

MARITAL STATUS - MAGI
DEDUCTION

Married- joint MAGI up to $150,000 Full $4,000 plus $1,000 "catch-up" if applicable, per spouse

Married- MAGI between $150,000 and $160,000 Partial

Married- joint MAGI over $160,000 None

If you are single or if neither you nor your spouse participate in an employer's retirement plan:

MARITAL STATUS - MAGI
DEDUCTION

Married- MAGI less than $3,000 for each spouse Up to income earned

Married- MAGI $3,000 or above for each spouse Full $3,000 each plus $1,000 "catch-up" if applicable

When Can I Use My Traditional IRA?

A Traditional IRA is intended for retirement savings.

Withdrawals can be made at any time; however, they are subject to tax in the year received. In addition, under current tax law, a 10% IRS penalty tax is assessed, in most cases, if under age 59-1/2.

Within specific guidelines, retirement benefits can begin prior to age 59-1/2 without incurring an IRS penalty tax.

Required Minimum Distributions (RMD) must begin by April 1 of the year following the year age 70-1/2 is attained.

What Other Advantages Do Traditional IRAs Have?

Income tax liability on tax deductible contributions and all earnings is deferred until retirement when taxable income is most likely reduced.

Contributions for a given year do not have to be made until April 15 of the following year.

Most taxpayers can tax deduct Traditional IRA contributions.

IRA retirement benefits mean added security when needed most.

WHAT IS A ROTH IRA?

The Roth IRA is a personal retirement savings plan. Contributions are not tax deductible, however, distributions of earnings are tax free under certain circumstances.

Can I Have a Roth IRA?
When Can I Use My Roth IRA?
What Other Advantages Do Roth IRAs Have?

Can I Have a Roth IRA?

If you have earned income, you may be able to establish a Roth IRA. You can contribute up to 100% of earned income or $4,000, whichever is less, per year. Taxpayers age 50 and over can make an additional annual "catch-up" contribution. The following table outlines contribution rules:

MARITAL STATUS - MAGI*
CONTRIBUTION

Single- MAGI up to $95,000 Full $4,000 plus $1,000 "catch-up" if applicable

Single- MAGI between $95,000 and $110,000 Partial contribution

Single- MAGI over $110,000 No contribution

Married, filing jointly- MAGI up to $150,000 Full $4,000 each plus $1,000 "catch-up" if applicable, per spouse
Married, filing jointly- MAGI between $150,000 and $160,000 Partial contribution

Married, filing jointly- MAGI over $160,000 No contribution

Married, filing separately- MAGI less than $4,000 Up to income earned

Married, filing separately- MAGI between $4,000 and $10,000 $4,000 plus $1,000 "catch-up" if applicable
Married, filing separately- MAGI $10,000 or above No contribution

*Modified Adjusted Gross Income
Participation in an employer-sponsored retirement plan does not affect your eligibility for a Roth IRA. Taxpayers with MAGI* of $100,000 or less (whether single or married, filing jointly) are eligible to make a rollover contribution from a Traditional IRA, or an IRA used in a Simplified Employee Pension (SEP) Plan or Savings Incentive Match Plan for Employees (SIMPLE), to a Roth IRA. Check with your tax representative to see if this is beneficial for you.

When Can I Use My Roth IRA?

The Roth IRA is intended for retirement savings.

An individual can make tax free withdrawals of interest if the Roth IRA is at least five years old and one of the following events occurs:

Attain age 59-1/2,

Become disabled,

Purchase a first home (subject to $10,000 lifetime maximum withdrawl), or

Death.

What Other Advantages Do Roth IRAs Have?
Withdrawal of principal contributed each year can be made at any time with no taxation.

Individuals can make contributions after age 70-1/2 as long as they have earned income and it falls within the MAGI table above.

No Required Minimum Distributions (RMD) at age 70-1/2.

Contributions for a given year do not have to be made until April 15 of the following year.

Distributions of interest is tax-free under certain circumstances (see "When Can I Use My Roth IRA" above).

WHAT ARE THE ADVANTAGES OF USING AN AUTO-OWNERS DEFERRED ANNUITY TO FUND MY TRADITIONAL IRA OR ROTH IRA?
Safety- Auto-Owners Life Insurance Company has been awarded an A.M. Best rating of A+ (Superior). A.M. Best Company is a leading independent organization for rating financial strength of insurance companies. In addition, Auto-Owners Life Insurance Company was named to the 2004 Ward's 50 Benchmark Group for achieving outstanding financial results in the areas of safety, consistency and performance.

No set up or annual administration fees.

Single or multiple deposits for varying amounts can be made at any time.

You have a choice of current guaranteed interest rates for three or six years, or a fluctuating rate of interest program. Each program includes a minimum 3% guaranteed rate of interest.

Transfers of eligible retirement plan assets can be made into an Auto-Owners Traditional IRA, therefore eliminating the mandatory 20% Federal income tax withholding when funds are not rolled over.

You avoid stock market volatility.

A statement of contributions made, interest credited, Fair Market Value, etc. is provided each year free of charge.

Convenience- an Auto-Owners Traditional or Roth IRA annuity provides you with numerous ways to liquidate your account. One of them is a monthly lifetime income which you (or you and your spouse) cannot outlive.

Auto-Owners deferred annuity products used to fund Traditional IRAs and Roth IRAs may have restrictions or limitations. They contain surrender charges on early withdrawls, and the IRS imposes a 10% penalty tax for most withdrawls before age 59-1/2.

WHY A TRADITIONAL IRA OR ROTH IRA FROM AUTO-OWNERS?

Personal one-on-one service from a qualified, specially trained professional independent agent right in your own community.

Not subject to stock market fluctuation.

Our Safe. Sound. Secure.® investment philosophy.

No investment responsibility.

Begin a Traditional IRA or Roth IRA with as little as $50; or $25 on a monthly basis.

A statement of contributions made and interest credited is provided each year, or more often upon request.

Funding vehicles are deferred annuities with the choice of a three or six year interest rate guarantee OR a deferred annuity with fluctuating interest rates.

Retirement income you or your spouse cannot outlive.

For additional information or a personalized illustration visit an independent Auto-Owners agent near you.
This is intended for general informational purposes only and not intended as legal or tax advice or as a statement of the law. See a competent tax advisor to help you decide if a Traditional IRA or a Roth IRA is right for you. Then visit an independent Auto-Owners agent.

WHAT ARE NON-QUALIFIED DEFERRED ANNUITIES?

Non-qualified deferred annuities are one of the best ways individuals have to set aside money on a tax-deferred basis.

A non-qualified deferred annuity is one which is not used as part of any qualified retirement plan, i.e. Traditional IRA or Roth IRA. Contributions made into a non-qualified deferred annuity are not income tax deductible. However, the amount contributed is not limited to a certain dollar maximum every year, and the earnings of the deferred annuity accumulate on a tax deferred basis.

A unique feature of an annuity, not found in any other investment vehicle, is that it can provide a stream of income that cannot be outlived. If the annuity benefits are to be paid over a lifetime, the monthly or annual benefit amount is guaranteed to come each and every month or year regardless of how long the individual lives. Several other payment options are also available. In the event of death, all proceeds can pass directly to a named beneficiary, without surrender charge, probate delay, estate settlement costs, or publicity.

Advantages of an Auto-Owners Life Insurance Company
Non-Qualified Deferred Annuity...

Safety- Auto-Owners Life Insurance Company has been awarded an A.M. Best rating of A+ (Superior). A.M. Best Company is a leading independent organization for rating financial strength of insurance companies. In addition, Auto-Owners Insurance Company has been named to the 2004 Ward's 50 Benchmark Group for achieving outstanding financial results in the areas of safety, consistency, and performance.

No set up or annual administration fees.

Single or multiple deposits for varying amounts can be made at any time.

You have a choice of current guaranteed interest rates for three or six years, or a fluctuating rate of interest program. Each program includes a minimum 3%guaranteed rate of interest.

You avoid stock market volatility.

More liquidity than a bank certificate of deposit.

A statement of contributions made, interest credited, etc. is provided each year free of charge.

Convenience- an Auto-Owners Life Insurance Company Non-Qualified annuity provides you with numerous ways to liquidate your account. One of them is a monthly lifetime income which you (or you and your spouse) cannot outlive.

Auto-Owners Life Insurance Company deferred annuity products may have restrictions or limitations. They contain surrender charges on early withdrawls, and the IRS imposes a 10% penalty tax for most withdrawls before age 59-1/2.

Regardless which program fits your specific needs, Auto-Owners Life Insurance Company products are among the best in the industry. We pride ourselves in providing high quality, fairly priced life insurance, disability income, long term care and annuity programs.

Life-style protection for both you and your family...

What is Long Term Care?

Long Term Care is the care you receive when you cannot take care of yourself because of a physical or cognitive impairment. This care is usually provided either in your home, an assisted living facility, or a nursing home. This type of care is very expensive and government entitlement programs such as Medicare and Medicaid provide limited protection.

Who Should Consider Buying Long Term Care Insurance?

People who don't want to burden their children or family.

People who want to protect their assets.

People who want to have control of their care.

People who want to maintain their independence.

The Auto-Owners Long Term Care Policy...

Issue ages 18 to 100

Facility Daily Benefit Amounts of $50 to $250

Indemnity Policy...
When receiving qualified long term care, the policy pays the actual Facility Daily Benefit Amount listed on the policy declaration page, not up to the amount listed like many policies.

Pays benefit amount directly to the policyholder, not to the care provider.

Provides insured or insured's family with more flexibility in the use of this money.

No bills or receipts to submit.

Policy Programs that can be selected...
Basic:
Pays 100% of Facility Daily Benefit Amount.
Assisted Living Facility or Nursing Facility
No Home Health Care

7-day bed reservation benefit per calendar year.

Intermediate:
Pays 100% of Facility Daily Benefit Amount.
Assisted Living Facility or Nursing Facility

Pays 50% of Facility Daily Benefit Amount for Community Care or Home Health Care.

14-day bed reservation benefit per calendar year.

Advanced:
Pays 100% of Facility Daily Benefit Amount.
Assisted Living Facility or Nursing Facility
Community Care or Home Health Care

21-day bed reservation benefit per calendar year.

Special Features...
Available Benefit Periods:
2 years (730 days);
4 years (1460 days);
6 years (2190 days);
10 years (3650 days).

Waiting Periods:
30, 60 or 90 days.

Only needs to be satisfied once during lifetime of policy.

Waiver of Premium:
Premiums don't have to be paid while receiving benefits.

Guaranteed Renewable:
Policy cannot be cancelled if premiums are paid on time.

Pre-Existing Conditions:
Once a policy is issued, there are no restrictions or exclusion of coverage due to pre-existing conditions.

30-Day Free Look:
If not satisfied, premium paid will be refunded.

Tax-Qualified Policy:
Intended to be a qualified Long Term Care insurance contract under the Federal Tax Code, as defined under Section 7702B(b) of the Internal Revenue Code.
Optional Coverages...
5% Compound Benefit Increase Rider:
Facility Daily Benefit amount increases 5% on each policy anniversary, even when benefits are being paid.

Premium will not increase every year because of this benefit.

Non-Forfeiture Benefit Rider:
If premium paid for at least 3 years and then discontinued, benefits for qualified long term care will be payable equal to the amount of the premium paid or 30 times the initial Facility Daily Benefit Amount, whichever is greater.
Premium Discounts...
20% Preferred health discount*

20% Spousal discount*- applied when a husband and wife apply for and are issued policies.
( *25% maximum discount per policy )

NOTE: Coverages or discounts may not apply in all states.
Some exclusions and limitations may apply.

Regardless which program fits your specific needs, Auto-Owners products are among the best in the industry. We pride ourselves in providing high quality, fairly priced life insurance, disability income, long term care and annuity programs.

Life-style protection for both you and your family...

DISABILITY INCOME INSURANCE

People work hard to afford what they enjoy in life and to pay their continuing expenses such as food, clothing, shelter, utilities, insurance premiums and entertainment. Their ability to earn an income is their most valuable asset. If that ability is interrupted because of an accident or sickness, they may find it difficult to maintain their standard of living and impossible to plan for the future. Unfortunately, the chance of a disabling accident or sickness is greater than most people think, because...

1 out of 4 workers, age 35-65, will be disabled for 90 days.*
Disability is the cause of nearly 50% of all home foreclosures.*
Before age 65, if a disability lasts 90 days, it is expected to last an average of 2-1/2 years.**
80% of U.S. workers will exhaust their savings in only two months without the ability to earn an income.**

* National Association of Life Underwriters
** Commissioner's Disability Table

Auto-Owners Disability Income Policy Will Provide Money to Replace Loss of Earned Income While Totally Disabled from Sickness or an Accident...

Worldwide, 24-hour-a-day coverage while on or off the job.

Benefit period of 2 years, 5 years, or to age 65.

Waiting periods (the number of days before benefits begin) are 30, 60, 90, or 180 days.

Coverage is guaranteed renewable to age 65.

Premium rates can be changed on a class basis only. Any change will apply to all policies of this type and having a common policy form number.

A non-smoker discount is given to those who have not smoked cigarettes for 12 months or more.

Premiums are waived retroactively after 90 consecutive days of total disability.

First Day Disability Income Benefit may be added to provide a daily income while hospital confined.

An optional Accidental Death and Dismemberment Benefit may be added for any amount from $10,000 to $100,000.

A Partial Disability Benefit is included at no additional premium. Partial disability must follow a period of total disability for which benefits were paid. The Partial Disability Benefit equals one half the monthly benefit paid while totally disabled, for up to six months or until the end of the benefit period, whichever is less.

NOTE: Coverages or discounts may not apply in all states. Some exclusions and limitations may apply.

Auto-Owners Life Insurance Company products are among the best in the industry. We pride ourselves in providing high quality, fairly priced life insurance, disability income, long term care and annuity programs.

Coggins Insurance Agency, Inc.

Pensacola, FL